BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 166


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          Date of Hearing:  April 22, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          166 (Beth Gaines) - As Amended March 11, 2015


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          |             |Arts, Entertainment, Sports,   |     |6 - 0        |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill authorizes the Department of General Services (DGS),  
          with consent from the Department of Corrections and  
          Rehabilitation (CDCR), to enter into a long-term lease for land  








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          on the grounds of the California State Prison at Folsom (CSP)  
          for a non-state funded peace officers memorial and museum.  
          Specifically, this bill:

          1)Authorizes DGS to lease property for the museum facility-to a  
            nonprofit entity formed specifically to implement construction  
            and operation of the museum-for up to 50 years, with periodic  
            review of the lease every five years.

          2)Makes the lessee fully responsible for the maintenance and  
            operation of the facility and exempts the state from any  
            liability for facility construction, operation, improvement or  
            maintenance.

          3)Requires the lease terms to include specified circumstances  
            under which the property would revert to the state, and  
            authorizes DGS, under such circumstances, to charge the lessee  
            for any costs incurred in the demolition of the facility and  
            restoration of the property to its pre-leased condition.

          4)Requires the lessee to pay all administrative costs incurred  
            by DGS associated with the lease and any required easements.

          FISCAL EFFECT:


          1)Minor one-time costs (less than $10,000) for DGS to develop  
            and execute the lease, to be reimbursed by the lessee.

          2)Minor annual General Fund lease revenue.



          COMMENTS:


           1)Purpose  . According to the sponsor, the Old Guard Foundation,  
            Inc., the current museum space near the entrance to CSP Folsom  
            is "too small of a location to adequately highlight the  








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            history of corrections, house important artifacts, honor the  
            men and women who serve in the corrections profession, and  
            dispel the negative stereotypes surrounding the corrections  
            system."  

          The author states that this bill is intended to facilitate an  
            arrangement with DGS and CDCR to provide for an expansion of  
            the current museum to a larger site on prison grounds.  
            According to the author, the expanded facility would be built  
            and operated with private donations and CDCR would have no  
            role in its construction or operation once a lease is  
            approved.  CDCR reports that it has been in collaborative  
            discussions with the sponsor regarding an expansion of the  
            existing museum. The sponsor estimates the project will be  
            completed in three phases at a cost of approximately $7  
            million.  To date, the sponsor has raised about $171,000.



          2)Prior Legislation. Last year, AB 1503 (Gaines) required,  
            rather than permitted, the proposed lease between DGS, CDCR  
            and specifically with the sponsor. AB 1503 was vetoed by the  
            Governor with the following message: "Current law already  
            allows the state to enter into shorter leases without  
            specifying the lessee.  Rather than forcing the state to allow  
            a little-known, non-governmental entity to use public property  
            for up to 50 years, I would prefer that supporters pursue the  
            existing authority provided in statute." AB 166 is permissive  
            and does not specify a lease with the Old Guard Foundation.



          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081













                                                                     AB 166


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